10.3 Document for Analysis: Poor Claim Letter From Unhappy Copier Owner
Current date
Mr. Trenton Khalifa
VIP Copier Specialists
1532 Nashville Pike
Gallatin, TN 37012
Dear Mr. Khalifa:
The four BizStar C500 photocopiers that we purchased three months ago are inadequate for our
volume of copying.
Although we told your salesperson, Carol Finley, that we average 3,000 copies a day, she
recommended the BizStar C500. This model appears to have been the wrong choice for our
heavy use, and we are disappointed in its performance. Therefore, we would like to trade in our
four C500 copiers (which cost about $2,300 each, as shown on the enclosed invoice) on the
purchase of two BizStar C1000 models (about $10,500 each).
When I discussed this possibility with your district manager, William Tanaka, he said that we
would be charged 50 percent depreciation if we traded in the four C500 copiers. That amounts to
a charge of $4,600, a considerable sum for three months of irregular copier use. We think a
depreciation rate of 20 percent, or $1840, is more reasonable. Your company would profit in
three ways:
• The BizStar C500 machines were used a short time, and they can be resold easily.